ecords good sales in Q3
By Our Corporate Bureau | 22 Apr 2002
Mumbai: Gujarat Ambuja Cements Ltd has fared well during the third quarter ending March 2002 with a higher sales volume and value. During the third quarter it sold 20.01 lakh tonnes of cement against 15.42 lakh tonnes in the corresponding quarter in the previous year - an increase of 30 per cent. The turnover during the period was Rs 430.35 crore against Rs 386.25 crore - an increase of 11 per cent.
Despite low cement prices prevailing in all the markets and a higher cost due to an increase in fuel prices, the company has done fairly well during the quarter. The operating profit is at Rs 119.43 crore as against Rs 130.56 crore in the previous year. There has been a substantial reduction in the interest costs, which are at Rs 21.83 crore against Rs 31.95 crore - a decrease of 32 per cent.
After charging a depreciation of Rs 33.72 crore (Rs 34.38 crore in the previous year), the profit before tax is Rs 63.88 crore as against Rs 64.23 crore. After providing for tax of Rs 4.50 crore (as against Rs 5.50 crore in the previous year), the profit after tax is Rs 59.38 crore as against Rs 58.73 crore in the corresponding quarter in the previous year. As per the new accounting standard (AS22), the company has recognised a deferred tax liability and, accordingly, provided for Rs 5.00 crore.
The construction work of the new cement plant in Chandrapur, Maharashtra, has been completed and the plant is under trial operations. It is expected to commence commercial production soon.
The growth in demand for cement during the financial year 2001-02 has been very good and for the first time the industry has produced and despatched 102.4 million tonnes of cement. The growth in demand of cement in the domestic market was about 10 per cent - at around 100 million tonnes. It is expected that the growth in demand will further accelerate during this year, as the demand for housing and construction of new roads are progressing well.
